UK Light Commercial Vehicle Market Slows in May 2025

The Society of Motor Manufacturers and Traders (SMMT) has reported a decline in new light commercial vehicle (LCV) registrations for May 2025. A total of 22,796 vans, pick-ups and 4x4s were registered, marking an 11.8% fall compared to May last year. This is the sixth consecutive month of falling registrations.

Registration breakdown

Large vans (2.5–3.5 tonnes): down 14.0% (14,652 units)
Mid-size vans (2.0–2.5 tonnes): down 9.2% (4,065 units)
Small vans (under 2.0 tonnes): down 7.8% (673 units)
Pick-ups: down 12.7%
4x4s: up 36.9% (716 units)

The SMMT attributes the slowdown to reduced business confidence, rising costs, and changes to tax rules for pick-ups, especially double-cab variants that are now taxed as cars. These shifts are making some businesses more cautious about replacing or expanding their fleets.

Year-to-Date Trends: January to May 2025

From January to May 2025, 127,875 light commercial vehicles were registered, which is 11.5% fewer than the same period last year.

Pick-ups have seen an increase of 11.8% (18,148 units)
Small vans are also up by 33.2%
Mid-size and large vans are down by 15.3% and 15.9% respectively
4x4s are down 9.8%
Heavier commercial vehicles (over 3.5 tonnes) grew by 31%, and smaller electric HGVs (<4.25 tonnes) rose by 69.6%

Electric Van Registrations Continue to Grow

Electric vans are seeing steady growth. In May, 1,731 electric vans were registered—50% more than in May 2024. This is the seventh consecutive month of growth.

So far this year, 9,756 electric vans have been registered, making up 7.6% of all new LCVs. This is a positive step forward, but still short of the UK’s targets under the Zero Emission Vehicle (ZEV) mandate, which require 16% of LCV sales to be electric by the end of 2025.

Some analysts expect the electric van market share to reach just over 10% by year-end, highlighting the need for further investment in charging infrastructure and support for operators considering the switch.

What’s Driving the Market?

Several key factors are influencing the current state of the market:

Uncertainty in business investment
Higher costs and economic pressure are causing businesses to delay fleet updates.
Taxation changes
The reclassification of certain pick-up trucks for tax purposes has made them less attractive to some sectors.
Slow transition to electric
While electric van registrations are increasing, they still fall short of government targets. Challenges such as limited charging infrastructure and higher upfront costs remain key barriers.
Manufacturer pressure
With stricter emissions targets in place, manufacturers are under pressure to increase the supply of electric models, but demand needs to keep pace.

Outlook

The LCV market is facing some clear challenges. However, growing interest in electric vehicles signals a long-term shift in the industry. To meet the UK’s emissions targets, industry experts are calling for:

Greater investment in charging networks designed for vans
A review of recent tax changes impacting pick-ups
Targeted incentives to help businesses make the move to cleaner transport

As new vehicle sales continue to decline, many businesses are choosing to hold onto their existing vans for longer. While this can help manage short-term costs, it also creates a bottleneck in the longer term, leading to an ageing fleet that’s more prone to breakdowns, higher maintenance costs, and inefficiencies. When these older vehicles eventually need replacing all at once, operators may face long lead times or limited availability. CPD helps mitigate this risk by offering ready-to-convert stock, flexible build slots, and tailored conversion options that allow businesses to phase in replacements before reliability becomes a problem. By planning ahead with CPD, customers can avoid disruption and stay in control of their fleet strategy.

CPD will continue monitoring developments in the market and helping customers navigate these changes with flexible options and expert advice.

Tom Pearson, Commercial Director at CPD commented
“The latest figures reflect what many of our customers are experiencing - it's a challenging time to commit to new vehicles. Rising costs, tax changes, and uncertainty around electric infrastructure are all contributing to hesitation across the market. Businesses aren’t lacking in need; they’re facing a rapidly changing landscape and understandably cautious about making the wrong move. But delaying too long can create a different set of problems. Ageing fleets bring increased maintenance costs, reduced reliability, and risks to productivity. That’s why we’re encouraging a phased, strategic approach, balancing short-term operational demands with long-term fleet planning. CPD, have prepared for this by securing stock of key models and protecting conversion capacity, so we can act quickly as customer needs evolve. Whether it’s replacing high-mileage vehicles gradually, trialling electric models, or accessing flexible finance options, we’re here to help businesses stay agile and in control.”

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